by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Emerging Issues Task Force?The Emerging Issues Task Force (EITF) is an institution established in 1984 by the Financial Accounting Standards Board (FASB) with the aim of assisting and improving financial reporting techniques.What Does the Emerging Issues...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Last-In-First-Out (LIFO) Accounting Method?LIFO (Last-in First Out) is an asset-management and inventory accounting method. Per this system, the assets (inventory) received or manufactured last are the first to be sold. Older inventory is sold only after...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Double-Entry Accounting?Double entry accounting is used to balance the accounting equation. That is, Assets must always equal Liability + Owners Equity. As such, entering any amount on one side of the equation requires entering the same amount on the other...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Debt Coverage Ratio?Debt coverage ratio or debt service coverage ratio is the ratio of net operating income to annual debt service. The annual debt services include interest, principal, sinking fund and lease payments. It is a widely accepted benchmark for...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Days Payable Outstanding?Days Payable Outstanding is an efficiency ratio indicating the average number of days a company takes to pay its bills and invoices. A company needs to make payments to suppliers, vendors, and other companies on a regular basis for the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Days Sales Outstanding?Days Sales Outstanding is the average collection period of a company. Days Sales Outstanding is also known as “days receivable”, “average collection period”, or “average debtor days”. It is calculated...
